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PostPosted: Tue Dec 11, 2012 2:21 pm 
Old School Grand Master
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Joined: Tue Oct 19, 2010 9:55 am
Posts: 7058
Location: The land of Lea & Perrins
OK, so myself and my girlfriend are fed up of paying a large percentage of our wages each month, just to line the pockets of our landlord whilst he swans about over in Australia. This frustration has compounded itself since a friend of ours mentioned that the mortgage on his first property is costing him £70 a month LESS than we're currently paying in rent.

We want to get a mortgage to buy our first house, and using various mortgage calculators we've worked out roughly how much we can afford to borrow.

The trouble is, neither of us have what you would call a sparkling credit rating - we're more like Greece than the UK.. Here are some of the problems:

- My girlfriend had to declare herself bankrupt a good few years ago, thanks to an ex-partner of hers who basically stitched her up. She has been discharged for just over 2 years now.
- I'm currently under a debt management plan with the CCCS, and I'm paying off the final part of my debts (a small amount which I could pay off in two or three lump sums if needed).
- We both earn a relatively low income (~£34k between us, before tax).


Are we knackered?


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PostPosted: Tue Dec 11, 2012 2:26 pm 
Old School Grand Master
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Joined: Sat May 20, 2006 2:56 pm
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Location: No brakes? Way to commit soldier.
Yes.


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PostPosted: Tue Dec 11, 2012 2:40 pm 
Old School Grand Master
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Location: The land of Lea & Perrins
Thought as much. Ah well, at least it saves us the ballache of applying, paying fees and being turned down.

Cheers.


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PostPosted: Tue Dec 11, 2012 2:55 pm 
Retro Guru
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Joined: Fri Sep 04, 2009 9:37 am
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Location: Bristolcestershire
Your income certainly wouldn't be a problem but your history probably will be. Doesn't necessarily mean it's impossible but it might be. If I were you I would go to an estate agent with a decent mortgage adviser in-house (do research among mates to find out who's good) and show interest in a house and ask to do an Agreement In Principle before viewing. You'll almost certainly get away without having to pay a penny for this. An AIP is simply working out if you could get a mortgage even if it's crap (which yours probably will be, but still cheaper than renting). Basically, if the adviser knows their stuff, it's half an hour of helpful financial advice for free. Some mortgage providers will do an AIP without running a credit check - even better.

Don't talk to the agent, they are all halfwits. Talk to the mortgage adviser and the adviser only. IFAs are generally lucid and informative whereas agents are dimwitted (although if you're lucky, smoking hot). Also, don't bother applying straight to the lender - you will pay to apply and get nowhere.

Do you have any deposit, or parents who would be willing to act as your guarantors? Either of these will help - in fact it will be nigh on impossible to buy without a substantial deposit...

Good luck!


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PostPosted: Tue Dec 11, 2012 2:57 pm 
Old School Grand Master
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Location: uk
hi even though 'discharged' it is still (i think) 7 years before you are clean in banks eyes.....


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PostPosted: Tue Dec 11, 2012 3:21 pm 
Retro Guru

Joined: Mon Apr 03, 2006 5:11 pm
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Barneyballbags wrote:
Are we knackered?


Depends on how much deposit you have. Speak to a mortgage advisor not us lot! I found http://www.lcplc.co.uk/ useful as recommend on the money programme a long time ago.


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PostPosted: Tue Dec 11, 2012 3:25 pm 
retrobike rider / Gold Trader
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Joined: Sat Jan 27, 2007 10:35 pm
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Location: The desolate flats of Cambridgeshire
I too am wanting to go down the buy route, rent in London is phenomenal. Problem for me is I was made redundant early last year, for the third time since leaving uni in 2002- one of the perils of working in R&D.

I have been self employed since, and bringing in more money than I have at any point in my life. But without three years of books, even the contractor specific mortgage lenders will run for the hills rather than talk percentage points. The irony being, contracting so far appears to be at least as secure as some of my employee jobs, yet with more money.

So I think from my limited view of the current market, with a good credit record and no outstanding debt, yet still unable to get a mortgage, you will sadly find it difficult.


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PostPosted: Tue Dec 11, 2012 3:28 pm 
Old School Grand Master
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Joined: Tue Oct 19, 2010 9:55 am
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Location: The land of Lea & Perrins
was8v wrote:
Barneyballbags wrote:
Are we knackered?


Depends on how much deposit you have. Speak to a mortgage advisor not us lot! I found http://www.lcplc.co.uk/ useful as recommend on the money programme a long time ago.


I've spoken with a local mortgage advisor who has basically "advised" me that we're essentially knackered because of the bankruptcy. I just wanted to see whether anyone was in/had been in a similar situation and how did they get around it.

The trouble is, we really can't afford more than a 5% deposit, so we'd be looking at 95% mortgages, which are out there, but which are very very unlikely to be available to us.. The Welsh Government is rolling out the "Newbuy" scheme in Wales next year (it's already going in England), which is a scheme whereby the Government "Guarantees" the mortgage. It's available on various new build developments and there are quite a few developers signed up to the scheme already, but we don't want to be tied to a new build if we can help it, because there simply aren't any new builds in any areas where we've been looking at moving to!


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PostPosted: Tue Dec 11, 2012 3:39 pm 
Old School Grand Master
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Location: uk
My advice to you would be..........while waiting for the 7 years to be up, find the cheapest 'private' landlord you can, with a small place, and save every £1.00 you can till the 7 years is up.

In the meantime, get catalogues and high interest credit cards and use them like once a year and pay off the items as soon as you have it.

This will start to give you a healthy credit rating again REMEMBER no credit rating is a BAD credit rating.....they want to see you can borrow and pay back over a period of time.


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PostPosted: Tue Dec 11, 2012 3:45 pm 
retrobike rider
retrobike rider
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Joined: Sun Dec 18, 2011 10:42 pm
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Location: milton keynes
far from it. there are specialist mortgage companys that will help just google as im sure you have. the halifax are partial to lending to people with adverse credit by all accounts.


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